Hawker Beechcraft Deal Triggers Skepticism

Bethany Whitfield

Thursday, July 12, 2012 at 08:47 PM ET

Verified

Hawker 400

Key Takeaways:

Hawker Beechcraft plans to sell to Beijing-based Superior Aviation for $1.79 billion, a deal that has raised skepticism among industry analysts.
Concerns focus on the excessive purchase price for a company recently out of bankruptcy (excluding its defense unit) and doubts about Superior's ability to leverage Hawker Beechcraft's older product lines for growth in the Chinese market.
Despite the skepticism, some suggest the announcement might attract higher bids for the manufacturer or act as a competitive threat to rivals like Cessna in the Chinese aviation sector.

See a mistake? Contact us.

In the wake of Hawker Beechcraft’s announcement that it plans to sell the company to Beijing-based Superior Aviation for $1.79 billion, certain aspects of the deal are raising eyebrows among skeptical industry watchers.

A number of analysts quoted in multiple news reports have questioned the large sum being offered for the company, maintaining such an amount for the beleaguered entity – which filed for bankruptcy in May to wipe out a massive $2.5 billion in debt – is excessive, especially considering that Hawker Beechcraft Defense Company is not part of the agreement.